"It shows that overseas traders have high enthusiasm for the domestic iron ore futures market," said Yang Qing, general manager of Galaxy Futures, a domestic brokerage.

"The introduction of overseas qualified traders to participate in iron ore futures trading will make domestic iron ore futures prices more influential and have a positive and far-reaching impact on the pricing mechanism of iron ore spot trading," Yang said.

Glencore PLC, one of the world's biggest commodity traders and miners, became DCE's first overseas iron ore futures trader, buying a contract through Straits Financial Group Pte Ltd and Xinhu Futures.

"With the introduction of overseas traders, overseas miners, traders and institutional investors will be involved in succession. The price of iron ore futures can more accurately reflect the changes in supply and demand and the macroeconomic impact of the global iron ore trade," said Yang Xidong, general manager of Xinhu Futures.

Yang said it will help promote China's iron ore futures to become a global iron ore trade pricing benchmark, taking China's iron ore futures market from a regional to the global market. The linkage between domestic and foreign markets will become stronger, and cross-market transactions will be more convenient.

"Domestic and overseas customers can further carry out cross-border warehouse pledges, off-exchange options, capacity maintenance and other services to reduce the impact of market uncertainties, and then achieve global industrial chain risk management," he said.

Roger Quek, managing director of Straits Financial, said with the internationalization of China's iron ore futures, more and more foreign investors are starting to pay attention to China's futures market.

The international recognition and functional role of China's iron ore futures will be further enhanced, he added.